Mobile phones are the most purchased technology in the world, with 1.21 billion smartphone units sold last year alone. In previous years, the price rarely affected mobile phone sales. However, the International Data Corporation says shipments are expected to decline about 1.1 percent in 2023.
Previously, smartphone shipments were forecast to increase, but according to an International Data Corporation press release, the new prediction stems from “a slower market recovery than previously expected.” Instead of the predicted 2.8 percent increase, the Worldwide Quarterly Mobile Phone Tracker now estimates that shipments of smartphones will see a slight decline this year.
According to Nabila Popal, a research director with IDC, increasing costs and lower consumer demand are making OEMs cautious about 2023. IDC estimates market recovery in 2024, with 5.9 percent year-over-year growth that year, followed by low single-digit growth throughout the next few years. The press release stated this would result in a five-year compound annual growth rate of 2.6 percent.
Popal said, “While there is finally some good news coming out of China with the recent reopening, there is still a lot of uncertainty and lack of trust, which results in a cautious outlook. However, we remain convinced the global market will return to growth in 2024 once we are past these short-term challenges, as there is a significant pent-up refresh cycle in developed markets and room for smartphone penetration in emerging markets to fuel stable long-term growth.
As inflation grows and the price of everything increases, it is possible that many consumers are unwilling to pay skyrocketing technology prices and have chosen to purchase used devices.
Purchasing used devices rather than brand-new ones helps reduce demand for manufacturing, which saves time, energy, and money. Opting for used devices also preserves natural resources used to make new products.
HOBI International Inc. is a premier IT asset management and disposition enterprise with more than 30 years of industry experience. We offer repair and refurbishment services, and remarketing opportunities for devices at the end of their use. Remarketing used devices provides an alternative channel of sales for costly new devices.
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